Is rental loss carryover a choice?

[SF2]

Imagine I have two rental properties:

Property A: Net profit = $10000

Property B: Net loss = -$2000

This is all my income, so regardless of this loss, my income is less than the standard deduction of $13,850, and I am not benefiting from reporting this loss this year. I'd better keep the loss to report it next year with a potentially higher income. Is that a choice that I can make? If yes, how will it be shown on Schedule E.

[DavidD66]

If you actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 of loss from the activity from your nonpassive income. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities.  To qualify for the full $25,000 loss deduction your modified adjusted gross income must be $100,000 or less ($50,000 or less if married filing separately).  If your modified adjusted gross income is more than $100,000 ($50,000 if married filing separately) but less than $150,000 ($75,000 if married filing separately), your special allowance is limited to 50% of the difference between $150,000 ($75,000 if married filing separately) and your modified adjusted gross income.  Generally, if your modified adjusted gross income is $150,000 or more ($75,000 or more if married filing separately), there is no special allowance.  

If you don't qualify for the exception your losses will carry forward until used to offset other passive losses or you dispose of the property.   Your unallowed losses will be reported and carried forward on Form 8582.  You don't have to make any elections, it will happen automatically.  Unallowed losses are not shown on Schedule E.  

[tagteam]

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@SF2 wrote:

Property A: Net profit = $10000

Property B: Net loss = -$2000

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Here's the question: What was your gross income?

Your figures are net, which is not what you would use to determine whether or not you would be required to file. 

[SF2]

I am simplifying the case, but my point is that can I elect to keep my losses for next year, if it helps me save on my taxes.

I haven't reached a limit on passive income loss, or something like that, but filing my loss this year is not saving me any tax.

The reason that I am filing, is that I have a small amount of Schedule C income, that I assume I have to file to pay self-employment tax.

Also, I think I need to file my tax and Schedule E, to claim depreciation on my rental properties and present the calculations that result in these lower net incomes. I am not sure if I can keep the calculations for myself, and don't report it, because the total taxable income is less than standard deductions, can I?

[tagteam]

You need to report all of your income and expenses, as well as gains and losses for the tax year.